Happy New Year! 2011 will most likely be a big year for the music industry. Musicians and music companies, experimenting with the various tools that make creating, marketing, and distributing music easier, have finally started to get an understanding of the “new” music industry’s landscape. With this in mind, here are three predictions I’ve made for the coming year:
Analytics will play a larger, more dominant role in musicians’ overall business strategies
Tools like Next Big Sound have made powerful analytics suites available to musicians at all levels of their careers. More artists will start to use analytics to plan out tours, marketing campaigns, and distribution strategies. Doing so will allow musicians to save money, cater to their fan bases, and explore new opportunities.
Artist-to-fan relationship commerce opportunities will continue to develop and become more profitable
Topspin, Tunecore, Bandcamp, and ReverbNation, among other companies, have made strides in helping artists make money from simple interactions with their fans. As artists get more familiar with new technologies, more opportunities are sure to pop up, granting fans direct access to their favorite artists and creating more streams of revenue for working musicians who are using the technology properly.
There will be a marked transition from “do-it-yourself” to “team” efforts
If an artist is truly growing their fan base using proper fan relationship management practices (i.e. actually communicating with their fans), they will need help executing their strategies. A lot of artists are getting to the point where spending three hours a night replying to every booking solicitation, press inquiry, social media comment, and friend request isn’t practical. They need help focusing on the “non-essential” tasks like booking, strategizing, and administrative work. The trick to making this successful will be building a competent team a creating a strategy that still involves genuine interactions between artists and their fans.
The theme in 2011 is “Proper Use Of Music Business Tools and Technologies”. If musicians can master the tools available to them, they’re well on the way to prosperity!